What is Intraday Trading?
As we have explained in the previous section, Intraday or Day Trading refers to the buying/short selling of securities or other financial instruments and squaring them off on the same trading session. The people whose daily bread and butter is earned through Intraday Trades are called Intraday Traders.
It is important to note that Intraday and Swing Trading are 2 different dimensions of trading and a person should focus on one of them at a time.
The psychology of a person plays a very important role in intraday trading.
Another thing to note is that the strategies and the time frames that work well in Swing Trading will probably not work as well in intraday Trading.
For example, in cricket, if a T-20 match is going on, a team will take a different approach and plan of action than the one they will have in a test match. Some players can perform better in a Test Match when compared to a T-20, which is why we don’t see them frequently in a T-20 Match. Similarly, there are players (read tools and indicators) who can perform better in an Intraday strategy when compared to a Swing Trading strategy.